Oracle to control TikTok's algorithm in US under Trump-approved deal
What's the story
Oracle has been chosen as the lead company in a deal approved by President Donald Trump's administration, to oversee the algorithm and security of TikTok's popular video platform for US users. The final details are yet to be finalized among several joint venture partners, including investment firm Silver Lake Partners and possibly media mogul Rupert Murdoch and personal computer pioneer Michael Dell.
Regulatory approval
Deal still needs China approval and regulatory clearance
President Trump is likely to sign an executive order later this week, stating that the deal's terms address the security concerns mentioned in the Protecting Americans from Foreign Adversary Controlled Applications Act. However, China still needs to approve this framework proposal and any final deal would need regulatory approval. The proposal seeks to separate TikTok's US operations from its Beijing-based parent company ByteDance over national security concerns.
Algorithm control
Oracle will monitor US data flowing through TikTok
The proposed joint venture would get a licensed copy of the recommendation algorithm that keeps TikTok users hooked. Oracle will then review, monitor and secure US data flowing through the service. American officials have warned that ByteDance's algorithm can be manipulated by Chinese authorities to shape content on the platform in ways that are hard to detect.
User experience
Will US TikTok differ from global version?
It is still unclear if the US version of TikTok will differ from what users see globally. Any major changes to a social media platform's service could risk alienating its audience, according to eMarketer analyst Jasmine Enberg. However, White House press secretary Karoline Leavitt assured that the change in control won't affect user experience on TikTok. ByteDance is expected to hold a 20% or smaller stake in this US joint venture with its board controlled by US investors.